SIE practice questionmediumSecurities Act of 1933
Which statement is TRUE regarding exempt securities under the Securities Act of 1933?
- AU.S. government and municipal bonds are both exempt from SEC registration.✓ Correct answer
- BAll corporate bonds are exempt.
- CCommon stock is always exempt.
- DPreferred stock is never exempt.
Explanation
Why A — U.S. government and municipal bonds are both exempt from SEC registration.
U.S. government and municipal securities are exempt. Most corporate bonds and common stocks are not exempt. Preferred stock (D) sometimes can be exempt, such as in a private placement.
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